The 2 asset classes ripe for thriving in the new market regime

BlackRock's Tamara Haban-Beer Stats talks about the benefits of investing in infrastructure and REITs.
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Hans Lee

Livewire Markets

Note: This Fund in Focus was taped on Thursday 7 November 2024.

Welcome to the new market regime—an era that will be more challenging for investors used to the free money punchbowl that has dominated markets for most of the last four decades. 

In the view of the world's largest and most influential asset manager BlackRock, this new regime will bring higher volatility, higher for longer inflation, more unpredictable macroeconomic conditions, and a new approach to portfolio construction. Gone are the days of the "set and forget" portfolio. Instead, investors would now be best served by innovative portfolio construction. In other words, the playbook of the last 40 years won't work now.

The end of the "set and forget" portfolio will also likely herald the end of the traditional 60% equities/40% bond and fixed income allocation approach. As 2022 demonstrated, it now pays investors to diversify into alternative assets.

Two of those alternative assets are infrastructure and real estate. According to Tamara Haban-Beer Stats, Director and ETFs and Index Investments Specialist at iShares by BlackRock, these two assets provide diversification, a lower correlation to equities, and a genuine income-earning opportunity.

But given how walled-off infrastructure and real estate investing has been in the past, how can you (the average investor) get access to this theme? If this is what you're after, look no further than this edition of Fund in Focus - discussing iShares' infrastructure product (ASX: GLIN) and its real estate product (ASX: GLPR).

ETF
iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (GLIN)
Global Shares
ETF
iShares Core FTSE Global Property Ex Australia (AUD Hedged) ETF (GLPR)
Global Shares

Timecodes

  • 0:00 - Intro
  • 0:40 - Where does infrastructure investing fit in the "new market regime"?
  • 1:48 - Why should investors consider infrastructure and real estate allocation in their portfolios?
  • 3:03 - Can you break down the opportunity set for us?
  • 4:10 - What are the similarities between real estate and infrastructure? And what is one key difference?
  • 5:22 - What flows have you been seeing for this ETP? What am I paying and what am I paying for?
  • 7:04 - What economic themes does investing in this asset class tap into?
  • 8:59 - Can investors expect distributions?

Building global infrastructure and property into your core can allow investors to capture potential growth opportunities and navigate market cycles.

Learn more about how to use Real Assets ETFs here.

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This material has been created with the co-operation of BlackRock Investment Management (Australia) Limited (BIMAL) ABN 13 006 165 975, AFSL 230 523 on 7 November 2024. Comments made by BIMAL employees here represent BIMAL’s views only. This material provides general advice only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide on its website for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction. Livewire gives readers access to information and educational content provided by financial services professionals and companies (“Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

Hans Lee
Senior Editor
Livewire Markets

Hans is one of Livewire's senior editors. He is the creator and moderator of Livewire's economics series "Signal or Noise". Since joining Livewire in April 2022, his interview record includes such names as Fidelity International Global CIO Andrew...

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